So, goodbye to the “Trump bump,” as Tesla’s stock is now trading lower than it was prior to the election as a result of another month of poor China sales data that sparked the latest selloff. Wall Street had believed Tesla investors would be among the biggest beneficiaries of a Donald Trump presidency, especially since Chief Executive Elon Musk provided hundreds of millions of dollars in support before the November election.
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Read: Musk’s “bet for the ages” on Trump may result in a 50% increase in Tesla’s stock. However, Tesla’s sales have been suffering as a result of Musk’s prominent role in the Trump administration, which has started trade wars with key trading partners such as China and the European Union. This is now costing investors and Musk money. On Monday, Tesla’s stock fell 15%, reaching its lowest level since Oct. 23, 2024, when it hit $213.65. It also experienced its largest one-day selloff since Sept. 8, 2020, when it fell 21 percent. It was on track for an eighth consecutive weekly loss, breaking the previous record of a seven-week losing streak. On Monday, it had the worst performance in the S&P 500 and the second worst in the Nasdaq 100. The China Passenger Car Association stated on Monday that sales of new-energy passenger cars were “strong” overall, with market leader BYD Co. Ltd. rising 7.3% to 318,233 units, according to a Google translation of official data.
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View in the Watch View in the Watch However, Tesla’s sales fell 51.5 percent to 30,688 electric vehicles in February, down from 63,238 in January. That was after data showed that Tesla sales registrations fell by 76% in Germany, the largest economy in Europe, in February. In January, sales registrations fell by 60% in Germany and 45% across Europe due to Musk’s divisive politics. In addition, Tesla sales in China dropped 11% in January. That followed Tesla reporting on Jan. 29 fourth-quarter profit and revenue that missed expectations.
Investors and Mush have forfeited the entire stunning gain they had projected at the stock’s post-election peak as a result of Monday’s selloff. From a close of $251.44 on Nov. 5, or Election Day, the stock had skyrocketed $228.42, or 90.8%, to its Dec. 17 record close of $479.86.
In essence, Tesla’s market capitalization increased by $734.73 billion in just six weeks, and Musk’s ownership of Tesla shares increased by $93.83 billion. Compare & Buy Term Life Insurance Plan at Lowest Premiums on Policybazaar
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At current prices, Tesla is worth $55.55 billion less than before Trump’s victory, and Musk has lost about $7.09 billion.
UBS analyst Joseph Spak’s Monday reduction of Tesla’s price target from $259 to $225 and gloomier outlook on the company’s first-quarter earnings, which are due in early April, only served to exacerbate the situation. Spak cut his delivery expectations to 367,000 EVs, from a previous expectation of 437,000 EVs. According to Spak’s prediction, deliveries would fall by 5% year-over-year and by 26% from Tesla’s fourth-quarter deliveries. It also compares to the 435,000 Evs consensus set by FactSet. Tesla’s “long-term story … has shifted to AI (robo-taxis and humanoid robots) and progress there continues,” but those are longer-term catalysts that the stock’s “premium” multiples already takes into consideration, the analyst said.
